Indiana Legislature’s Short Session Addresses Pro-Business Issues

Despite a short, 60-day session and the House having a tight 51-49 split, the recently completed session of the Indiana General Assembly ended on a high note for insurers, according to the American Insurance Association.

“An election year and short legislative session did not stop progress in the Hoosier state on key issues for the insurance industry,’ said John Birkinbine, assistant vice president, Midwest Region. “The passage of House Bills 1307 and 1392 addressed a number of our specific concerns relating to issues like surety and commercial deregulation.”

According to Birkinbine, HB 1307 made a minor change to what is known as the ‘Second Injury Fund,’ a special fund that pays for total permanent disability in workers’ compensation claims. Assessments for workers’ compensation insurers will now be based on premiums rather than paid losses, a less complicated method of assessing costs.

The AIA also said that HB 1392 became an insurance omnibus bill addressing more than six different areas.

AIA supported legislative language in the bill: to allow the insurance commissioner to be appointed an “agent of service” for issuing certain surety bonds; to implement modest deregulation of commercial insurance, such as the elimination of certain form requirements; and to require school corporations that seek to pool their insurance coverage to form a trust for those assets, thereby protecting the schools and providing for regulation by the Department of Insurance.

“The 2004 election resulted in a new administration and a new majority in the legislature that brought with it a more pro-business, pro-development agenda. HB 1307 and 1392 reflect that mindset and should help insurers achieve a more streamlined and efficient market in Indiana,” added Birkinbine.

The Indiana General Assembly adjourned last week. Bills that were passed by the legislature, such as HB 1307 and HB 1392, now go to Gov. Mitch Daniels (R) for consideration.

The insurance industry has a significant economic impact in Indiana, contributing more than $179 million in taxes and fees in 2004 while employing more than 60,000 people, second in the state. There are more than 1,700 insurers licensed to do business in Indiana, according to the AIA.

The American Insurance Association represents approximately 400 major insurance companies that provide all lines of property and casualty insurance and write more than $120 billion annually in premiums.